Perhaps the biggest takeaway from Dropbox’s migration windfall is what industry observers have said for years: focus your IT dollars on what makes your business different. AWS is also known to give preferential pricing to some of its largest customers and has greatly expanded its professional services.
The best example to rebut that argument is Netflix, which operates more than 150,000 instances on AWS to serve more than 100 million customers. It’s also unclear how true is the axiom that the public cloud becomes cost-prohibitive once workloads reach a certain scale. Public cloud advocates argue the true benefit is not in cost, but rather in agility and access to higher-level services. Moreover, the public cloud removes parts or all of the manual work of in-house infrastructure maintenance. The shift from CapEx to OpEx has caused consternation among companies that expected big savings on the cloud, particularly those that failed to account for per-second billing and other ancillary costs. Still, the debate persists in part because of the lack of clarity on bottom line costs, and straight per-server comparisons. That’s why the major cloud providers, which make money hand over fist as customer data flood their hyperscale data centers, have either partnered with a private data center stalwart or built their own scaled down versions of their cloud to sit inside customers’ own facilities. Corporations increasingly trust public cloud providers to host their workloads, but most established corporations won’t relinquish the entirety of their private infrastructures any time soon. But that model may be feasible only for digital service providers with established businesses and patterns of demand, she said.Īfter years of debate about on-premises versus the cloud, IT leaders have become less dogmatic, and more pragmatic. and Europe, and it uses Amazon’s public cloud to “help deliver our services.” (Dropbox declined to comment for this report.)ĭropbox can serve as an example for SaaS or online services providers that don’t want to outsource a key pillar of a business value proposition to AWS, said Melanie Posey, an analyst with 451 Research.
The company spent more than $53 million for custom architectures in three colocation facilities to accommodate exabytes of storage, according to the S-1 filing.ĭropbox said it stores the remaining 10% of user data on AWS, in part to localize data in the U.S. That transition didn’t come cheap, however. It originally split its architecture to host metadata in private data centers and to host file content on Simple Storage Service (S3), but Dropbox built systems to better fit its needs, and so far that has translated to big savings following its cloud data migration. Dropbox was never 100% on AWS, nor has it completely abandoned AWS.
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